$465,000 FLSA Settlement Reached With Brownsburg Firefighters

The Town of Brownsburg, Indiana, has agreed to pay $465,000 to settle a federal lawsuit brought by current and former firefighters over unpaid overtime and the improper calculation of their regular pay rates. The settlement, approved by the U.S. District Court for the Southern District of Indiana on October 22, 2026, resolves claims that the town violated the Fair Labor Standards Act (FLSA) by failing to compensate employees for hours worked beyond federal thresholds.

The 212-Hour Threshold

The heart of the dispute lay in the “Section 7(k)” exemption of the FLSA, which allows fire and police departments to use work periods longer than seven days. Brownsburg utilized a 28-day work period, meaning overtime was required for any hours worked in excess of 212 during that window.

The firefighters operated on a 24-hour-on, 48-hour-off schedule. Because of how the calendar falls, they regularly worked 216 or 240 hours in a 28-day cycle. Despite consistently crossing the 212-hour threshold, the firefighters alleged the town failed to pay the required overtime. In some instances, the complaint alleged they were only paid half their hourly rate for certain overtime hours.

The Regular Rate Calculation Error

Beyond the total hours worked, the lawsuit targeted how Brownsburg calculated the base hourly rate used to determine overtime pay. The town divided annual salaries by 2,756 hours but excluded incentives, earned bonuses, and other premium payments from that calculation.

Brownsburg firefighters reach $465,000 settlement over pay calculations

Under the Fair Labor Standards Act, “regular rate” must generally include all remuneration for employment, meaning bonuses and incentives often have to be factored in to determine the correct time-and-a-half rate.

Payment Category	Amount
Back Wages	$141,341.63
Liquidated Damages	$117,341.56
Attorneys’ Fees & Expenses	$206,316.81

Individual firefighters will receive payments ranging from approximately $1,075 to $15,236, depending on their specific wage claims. The back wage portions will be reported as pensionable compensation to the Indiana Public Retirement System.

From a Single Paycheck to a Federal Suit

The friction began in December 2023 when a single firefighter questioned a paycheck. While an internal review corrected that specific error a month later, the broader systemic issues remained. The Hendricks County Professional Firefighters IAFF Local 4406 sought a legal review from the International Association of Fire Fighters in April 2024 and sent formal notice to the town in August 2024.

When those concerns weren’t resolved, firefighters filed the suit on May 5, 2025. The town maintained throughout the process that its practices complied with federal law and denied any wrongdoing. The settlement agreement explicitly states that Brownsburg admits no liability.

“The settlement resolves our members’ claims over money they are owed for hours they worked, but it does not change the reason we brought this case forward,” said David Brock, president of Hendricks County Professional Firefighters IAFF Local 4406, via a release. “Residents deserve a clear account of how the Town of Brownsburg handled the pay concerns that led to our lawsuit.”

A Shift to Hourly Pay

The town didn’t wait for the court’s final approval to change its ways. On April 6, 2026, while the lawsuit was still pending, Brownsburg switched its firefighters to an hourly pay system.

Hourly systems provide a transparent paper trail for time worked and simplify the calculation of overtime, removing the ambiguity of the “regular rate” disputes that plagued the salary-based system. As David Brock noted, this change ensures the town is compliant with federal law and that members are paid for all time worked.

The case was dismissed with prejudice on October 22, 2026, meaning the plaintiffs cannot file another lawsuit based on these same wage-related claims.

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